HIPs announcement July 2006

The following is a copy of the statement available on DCLG website, followed by a statement from Elmhurst Energy Systems Ltd

DCLG NEWS RELEASE,  Government announces phased HIP roll-out to begin with energy certificates

DCLG News Release 2006/0061, 18 July 2006

The Government today announced plans for the introduction of Energy Performance Certificates as part of the phased roll-out of Home Information Packs to help consumers cut costs and waste when buying a home and help the environment too. In the light of the plans for testing and concerns about the readiness of industry, the Government announced new proposals to phase the introduction of HIPs, prioritising the delivery of energy efficiency information with further testing later this year on the other aspects of HIPs.

This means that HIPs will be introduced in June next year with searches and energy performance information, enabling buyers and sellers to get A-G ratings on their homes similar to fridge ratings as well as a list of practical measures to cut their fuel bills and carbon emissions at the same time. The Energy Savings Trust estimates that by following the proposals in the Energy Performance Certificate, the average homeowner will save £300 a year on fuel bills. Government also believes that the information could be used to support the growth of green mortgages and other incentives.

However on the basis of detailed consultations with industry and the latest market and testing information, the government has decided to phase the roll out of other aspects of Home Information Packs, introducing the rest of Home Condition Reports on a market-led basis in the first instance, in order to ensure a smooth implementation with clear benefits for consumers.

Minister for Housing and Planning, Yvette Cooper said:

“HIPs can deliver great benefits for consumers and the environment. But it is important that they are implemented in a sensible way, based on proper testing. That is why we will begin with the most important element – energy efficiency ratings for homes.  This will mean practical information for homeowners on how to cut their fuel bills and carbon emissions.  People should be backing HIPs to help everyone respond to the global challenge of climate change.”

"We look forward to working with the lending industry, HIP providers and those training to be home inspectors as we develop the next steps."

The dry run aims to ensure that HIPs deliver the maximum benefits to consumers by looking at costs, the savings from avoiding waste and duplication, consumer attitudes to the Packs, failed transactions and transaction times, and people's willingness to sell with HIPs in place. It will begin with further consumer research in the summer as well as analysis of over 14,000 HIPs produced so far, in order to inform area based trials later in the year which will be independently monitored.

Ministers are determined to avoid the risks to consumers and to the implementation of Energy Performance Certificates from a “big bang” introduction in June next year. In particular, further testing is needed on the costs and impacts of Home Condition Reports and the government does not want to see early roll out of Energy Performance Certificates jeopardised by late amendments or delays to the rest of the scheme.

The latest information casts doubts on the readiness of the industry to be able to pass on the benefits to consumers from next June.  There are concerns about the number of home inspectors who will be in place in time.  In addition evidence from the Council of Mortgage Lenders shows that many lenders will not be in a position to make maximum use of Automated Valuation Models which will support the use of the Home Condition Report.  The Government is keen to avoid risks to consumers from industry delays and potential late changes to the implementation timetable next year.

Therefore, the Government will begin by promoting the take up of HCRs on a market-led basis - including examining the case for pump priming and other incentives. Mandatory introduction of Home Condition Reports remains on the table, however the Government wants to encourage market led take up first, in order to allow a more flexible roll-out that responds to consumer demand and the results of further testing.  The Government will urgently review with key stakeholders what support is needed to ensure that there are sufficient home inspectors in place, and that consumers are fully protected.

 Elmhurst Energy Systems Response:

The statement clarifies that the Home Information Packs are being implemented from June 2007 and they will include all the searches and the Energy Performance Certificate (EPC). We have been and are currently training persons on the Reduced Data Standard Assessment Procedure (RdSAP), which is the methodology by which the EPC is being produced. Since the announcement we have been inundated with enquiries regarding energy rating properties, below we have attempted to answer all your queries.  

If you have already trained and been accredited for RdSAP and have passed the Home Inspectors Diploma:

You are ready for producing the Energy Performance Certificate (EPC) as part of the Home Information pack from day 1 (June 2007). Also as explained in your training you are ready for producing the EPC for rented properties, however the legislation and implementation is being defined by the DCLG (formerly ODPM). We have no start date for this, but the EU directive states it has to be implemented before January 2009, so will inform all our RdSAP accredited surveyors when DCLG make their long awaited announcement.

If you have already trained and been accredited for RdSAP but have yet to pass your exam and obtain your Home Inspectors Diploma:

The Home Inspectors Examination contains RdSAP questions, and successfully completing this, will allow you to produce EPC’s as part of the HIP and will also entitle you to provide the EPC for the rental sector. (Please see point above)

General Points:

As you can appreciate the driving factor in persons training for RdSAP has been the Home Information Pack, we have been offering our current courses, with a view that Home Inspectors will be displaying competence in RdSAP, and also would undertake the Home Inspectors Exam to achieve the HI Diploma. This exam contains RdSAP questions and therefore ensures a national standard framework for those wanting to produce the EPC. If you are undertaking your Home Inspectors training we have agreed that RdSAP training can only take place at a specific point in the HI’s training route; this ensures the candidates have been trained on surveying and building construction skills, before they undertake the RdSAP training.

We are currently seeking clarification from Government as to what exact quality standards are necessary for persons to be deemed competent to produce EPC’s on a stand alone basis.  We at Elmhurst have always understood that there would be demand for a stand alone RdSAP qualification for use in the ‘rental sector’, where a HIP would not be required. We understand that a national recognised assessment procedure is required and technical standards need to be set in place, this is being clarified with Government.

If you have been trained with us before on previous surveying systems or you are an RICS or ABE member or have an equivalent Building Related Qualification; you can obtain your RdSAP accreditation through our current training options (please click on the link, scroll down for 'RdSAP Training Options' and 'available training dates'). There is very likely to be a further exam component requirement for this training, the exact details of which needs to be clarified with Government and the relevant quality standard authorities – which will of course be explained to all when we have agreement. If you have little or no building qualifications, we are in the process of setting up stand alone RdSAP training and accreditation courses; if you are interested please fill in your details on the following (LINK), we are compiling a list of interested persons/parties; you will be notified of the relevant courses when an announcement can be made.

We at Elmhurst are pleased to offer training, services and solutions to all persons who wish to provide Energy Performance Certificates. Any further announcements will be highlighted on our website.